Evolutionary Micro-dynamics and Changes in the Economic Structure

André Lorentz and Maria Savona ()

Papers on Economics and Evolution from Philipps University Marburg, Department of Geography

Abstract: The paper aims to account for the empirical stylised facts related to changes in sectoral structures that have led to the growth of services in most advanced countries over recent decades. A growth model with evolutionary micro-founded structural change is developed, which formalises the role of technical change and changes in intermediate demand as they affect the evolution of the sectoral composition of the economy and macro-economic growth. Firstly, we provide a micro-foundation for the Kaldorian Cumulative Causation mechanism. Secondly, we account for (demand-related) macro-constraints affecting the micro-behaviour of firms in the decision to adopt technology. We also formalise the mechanisms transmitting the effects of micro-behaviour on aggregate growth, via changes in the intermediate linkages and sectoral composition of the economy. The simulated results are based on the use of the actual data, including Input-Output (I-O) coefficients in the case of Germany. Three scenarios are identified, which account for the effects of a set of key parameters on changes in the structure of the economy.

Keywords: Economic Growth; Structural change; Growth of Services; Evolutionary Micro-foundation; Input-Output Length 36 pages (search for similar items in EconPapers)
JEL-codes: E11 L16 O14 O33 O41 (search for similar items in EconPapers)
Date: 2007-12
New Economics Papers: this item is included in nep-pke
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
ftp://137.248.191.199/RePEc/esi/discussionpapers/2007-17.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 500 Failed to connect to FTP server 137.248.191.199: A connection attempt failed because the connected party did not properly respond after a period of time, or established connection failed because connected host has failed to respond.

Related works:
Chapter: Evolutionary micro-dynamics and changes in the economic structure (2009)
Journal Article: Evolutionary micro-dynamics and changes in the economic structure (2008)
Working Paper: Evolutionary micro-dynamics and changes in the economic structure (2008)
Working Paper: Evolutionary micro-dynamics and changes of the economic structure (2007)
Working Paper: Evolutionary Micro-dynamics and Changes in the Economic Structure (2006)
Working Paper: Evolutionary Micro-dynamics and Changes in the Economic Structure (2006)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:esi:evopap:2007-17

Access Statistics for this paper

More papers in Papers on Economics and Evolution from Philipps University Marburg, Department of Geography Deutschhausstrasse 10, 35032 Marburg. Contact information at EDIRC.
Bibliographic data for series maintained by Christoph Mengs ( this e-mail address is bad, please contact ).